Government Contract Pricing

You can create rate sets with a rate definition type of billing, cost, cost/billing, or revenue, for use on cost-plus contract lines. Rate sets with the revenue rate definition type are available for government contracts if you select the Separate Billing and Revenue option on the Installation Options - Contracts page. The system separates the billing and revenue accounting rules because the amounts that are used for billing a government contract may be different than the amount and timing of revenue that is recognized and sent to the general ledger. You can run the Pricing Application Engine process (PC_PRICING) to process all contract lines, or run the process separately for cost, billing, or revenue transactions.

Billing, cost, and cost/billing rate definition types are always available for rate sets.

Note:

Government contracts are not eligible for organizational sharing or quantity-based tiered pricing.